ANU financial update for July 2020
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Revenue
The graph provides a breakdown of our revenue from what we have received as at June year to date (YTD) (from 1 January to 30 June) to what we are forecasting to receive over the remainder of the 2020 year. Whilst we anticipate that our revenues for the remainder of 2020 will remain steady, we still need to be mindful of the risk associated with the following revenue items (which may require additional savings targets to be generated over the course of the year).
- There is still uncertainty in relation to international student numbers, which will become more certain post census date (31 August). This may put pressure on the $77.1 million of revenues we are anticipating over the remainder of the year.
- Consultancy and contract revenues - ensuring that research milestones are delivered during the remainder of the year.
- Revenue from commercial tenants - tenants have been impacted by campus closures and the ongoing reduction in customers.
The YTD Revenue figures includes insurance proceeds received to date of $41 million representing final settlement of the Chiefly library claim and an initial payment on the Hail claim.
Expenditure
This graph depicts costs incurred June YTD (from 1 January to 30 June) and breaks those down into categories of what we anticipate to spend on operating and capital for the remaining six months. This has been divided into Salary costs (which includes our Voluntary Separation Program) and Non-Salary costs (including Campus Operations, Consultants, research consumables etc). Expenditure for the remainder of the year is on track for the University to achieve its targeted savings for operational expenditure of $75 million.
Cashflow
The cash flow graphs shows how much money we will have at the end of the year.
Moving from left to right on the diagram. First, the money we have to spend also known as cash inflows. As of 30 June 2020, we have $409 million in the bank, and that money takes us up the chart by that amount of money. We have in addition revenues that we are expected to receive over the remainder of the year, which takes us further into positive territory including:
- Government Revenues of $266 million.
- Students Revenues of $85 million (of which a portion of this is at risk due to uncertainty around student enrolments).
- Other Revenues of $55 million for Donations, management fees and trading revenue.
- A $200 million loan, the value of which we can spend on Capital Expenditure and one off items - so that takes us further into positive territory.
But against all those cash inflows, we have some important cash outflows, including: salary costs, non-salary costs required to operate the University such as our research and teaching activities and our Capital works program which has already been reduced. Each of these items moves us back down the diagram.
The net of these cashflow movements for the remainder of the year demonstrate that we are on track to achieve a closing cash position of $278.8 million by 31 December. This closing balance includes insurance proceeds of $41 million of which only $13.6 million is included in cash outflows this year. We cannot expend the insurance proceeds, net $27.2 million on normal operating expenditure as it is required for library replacement, remediation and strengthening works on buildings. Excluding the insurance proceeds, our closing cash position is expected at $237.8 million and Council have asked us to have $250 million in cash at the end of the year.
*Net inflows represents the timing associated with when we receive revenue (Debtors) and when we pay monies away (Creditors) and income associated with Investments.
